Cuomo's State of the State to focus on taxes, economy

Gov. Andrew Cuomo will give his fourth State of the State address today, and his emphasis likely again will be on tax relief and economic development.

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Uticaod

Posted Jan. 8, 2014 at 3:45 AM

Posted Jan. 8, 2014 at 3:45 AM

WHERE TO WATCH

Gov. Andrew Cuomo's State of the State address starts at 1:30 p.m. Here's where you can watch it:

Online: ...

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WHERE TO WATCH

Gov. Andrew Cuomo's State of the State address starts at 1:30 p.m. Here's where you can watch it:Online: http://www.governor.ny.gov/SOS2014/2014-State-of-the-StateTV: WCNY

Gov. Andrew Cuomo will give his fourth State of the State address today, and his emphasis likely again will be on tax relief and economic development.

In an address earlier this week previewing his tax-relief plan, Cuomo outlined a bevy of reforms to property, estate and income taxes for manufacturers.

But local officials and business leaders say they want to learn more about the plans before saying where they stand.

"They are all interesting," said Pamela Matt, Greater Utica Chamber of Commerce executive director. "We want to see how it all plays out in the proposed budget. Our concern is we want to make sure this isn't the shifting of money from one pocket to another, and that it's actually pro-business."

In a news release about the tax reforms, Cuomo said, "(The proposals) will keep New York moving in the right direction, creating jobs, growing the economy and providing much-needed relief for struggling families."

He also pointed to his success in turning the state's budget deficit into a surplus. When he took office in 2011, the state was running a $10 billion deficit, he said. Today, there is a $2 billion surplus, which he plans to use to implement his tax relief plan.

Among Cuomo's proposals:

* Property tax rebates: Taxpayers would get rebates for the amount of their tax increase for two years, but only if the taxing entities stay within the 2 percent tax cap and make meaningful efforts to consolidate services.

* Renters' tax credit: Cuomo would implement an income tax credit for renters earning less than $100,000 a year. This could help 2.6 million renters and cost the state $400 million in tax revenue.

* Tax changes for manufacturers: Manufacturers upstate and in New York City would get a property tax credit and eliminate the corporate income tax rate for upstate manufacturers. The move would cost the state more than $161 million in tax revenue.

The CEO of one local manufacturer said he likes the plans.

Frank Giotto of Fiber Instrument Sales in Oriskany said last year Cuomo's Start Up New York tax relief for new businesses had made him and other existing companies in the state feel "forgotten."

"I was encouraged to see the governor is acknowledging that the existing New York state manufacturers need to compete as well," he said.

Giotto called Cuomo's plans for manufacturers "creative" and said he looks forward to seeing how they work, if implemented.

Oneida County Executive Anthony Picente said he still has a lot of questions about Cuomo's plans, but believes some of the initiatives will be good for economic growth.

"It's all good stuff, but it needs to be explained in more detail he said.

Specifically, he said he wants to learn more about the property tax initiative and its consolidation requirements, since counties levy property taxes and therefore would be affected.

Page 2 of 2 - State Sen. Joseph Griffo, R-Rome, said the governor's focus should be on jobs and the economy – and that taxes are part of that.

"We should determine what works best," he said. "There are needs that have to be met, but I think we can do this well if we continue to communicate and arrive at consensus."